Key Takeaways:
- The share of hybrid workers globally dropped from 63% in 2022 to 47% in 2025
- 72% of companies now require at least some in-office presence
- Trust gaps and communication missteps are slowing return-to-office progress
- 63% of employees say they’d accept less pay for more remote work
- AI-powered collaboration and rethinking the role of the office are seen as critical next steps
In 2022, hybrid work was at its peak. Most employees worked remotely part of the week, companies scrambled to digitize, and leaders reimagined workflows on the fly. Fast forward to 2025, and hybrid work hasn’t disappeared—but it has changed shape. Cisco’s latest Global Hybrid Work Study provides a broad view of what’s working, what isn’t, and how forward-looking companies are adjusting course.
With data from more than 21,000 respondents across 21 countries, the report reveals a landscape marked by recalibration, not rejection. Hybrid work isn’t going away—it’s evolving to meet the needs of a more complex, performance-conscious, and digitally connected workforce.
From Surge to Sustainability: The Decline in Hybrid’s Dominance
The most striking shift in this year’s study is the decline in hybrid workers. In 2022, 63% of employees identified as hybrid. Today, that figure has dropped to 47%. Meanwhile, 31% now work fully onsite—up from 20% just a few years ago. That change reflects increased structure, with companies reasserting in-office norms, but also learning from experience.
Companies are no longer offering hybrid as a default. Instead, 72% now mandate in-office attendance to some degree. About 37% require specific days, while 35% mandate a minimum number of in-office days per week. Nearly one in four companies have revised their hybrid policies in just the past year.
At the same time, the model remains fluid. Some organizations are still offering flexibility, and more than half of employees say their current arrangement offers more autonomy than it did last year. In short: policies are getting clearer, but flexibility still matters.
Why Hybrid Remains Valuable
Despite reduced numbers, hybrid work remains a strategic tool—for employees and employers alike.
Talent Retention and Recruitment: Flexibility has become a top priority. Nearly two-thirds of workers say they would accept a lower salary if it meant more remote days. Among high performers, the numbers are even more telling: half say they work three or fewer days onsite. Offering hybrid flexibility may be critical to retaining the most productive team members.
Productivity and Performance: The majority of employees report that hybrid arrangements support their productivity. While some leaders remain skeptical, productivity gains from flexible schedules and reduced commute times continue to show up in employee feedback. Many workers say they are better able to focus and contribute when given autonomy.
Health and Wellbeing: Hybrid work also supports employee wellness. Workers who split time between home and office report better social connections, lower stress, and improved mental health compared to those working fully remote or fully onsite. The ability to manage work around personal needs continues to be a key driver of satisfaction.
The Roadblocks: Trust, Communication, and Clarity
Even as companies move toward structured hybrid models, challenges persist—especially around how policies are implemented and explained.
Trust Deficits: A significant share of employers cite productivity concerns as a reason for mandating in-office days. But only 39% of employees believe working from the office improves their output. This misalignment points to a trust issue. Many workers feel they’ve proven their ability to be effective remotely, while some leaders still equate visibility with performance.
Communication Gaps: Less than half of workers say hybrid policies have been clearly communicated. Many feel they weren’t consulted when rules changed. There’s also a perception gap: 47% of employers believe their RTO policies are well understood, but only 36% of employees agree.
Generational Preferences: Gen Z workers in particular continue to prioritize flexibility, technology access, and inclusive culture. Their preferences are increasingly shaping workplace design and collaboration expectations. Companies that overlook generational differences risk losing future leaders.
Building a Better Hybrid Strategy
Cisco’s study highlights several areas where employers can refine their hybrid strategies:
Personalize the Policy: There’s no single model that works for every company—or every team. Hybrid policies that account for role type, team function, and employee performance are more likely to succeed. Flexibility should be earned and maintained through outcomes, not blanket rules.
Communicate with Purpose: Transparency matters. Employees want to know the “why” behind in-office expectations. Clearly explaining the benefits of face-to-face collaboration—while offering support to make those days productive—can boost acceptance and morale.
Invest in the Office Experience: Offices should feel worth the commute. That means designing spaces for brainstorming, mentorship, and spontaneous connection—not rows of empty desks. Offices are evolving into collaboration hubs, not cubicle farms.
Upgrade Technology: Reliable collaboration tools are now table stakes. Nearly all employees agree that technology is essential for hybrid success, but fewer than half say their current toolset supports seamless work across locations. Addressing this gap could be one of the fastest paths to improving hybrid performance.
Enable Trust-Based Work: Rigid mandates can backfire. Instead, organizations should double down on performance management systems that reward output, not presence. When trust is backed by clarity and support, both sides win.
The Role of AI and Emerging Technologies
Looking ahead, many organizations are betting on artificial intelligence and smart technologies to reshape the hybrid experience.
A growing share of companies plan to deploy AI-powered collaboration tools in the next 12 to 18 months. These may include automated transcription, intelligent meeting scheduling, context-aware notifications, and even AI-driven team analytics. The goal is not to replace human input—but to amplify it, reduce friction, and enhance connection across locations.
Smart building features are also gaining traction. Offices are being reconfigured with sensors, occupancy analytics, and energy-efficient systems to optimize usage and improve employee comfort. For hybrid workers, that could mean personalized lighting, temperature settings, or automated workspace bookings.
These innovations point to a larger trend: hybrid work is no longer just about policy—it’s about infrastructure.
What High-Performing Companies Do Differently
Organizations with high-performing employees tend to share several characteristics:
- They offer more flexible hybrid policies
- They provide more consistent and reliable collaboration tools
- Their employees are more likely to feel trusted and empowered
- Their offices are designed for connection, not just occupancy
Notably, high performers are more likely to report seamless work experiences—whether in-office or remote. That consistency appears to support better engagement, collaboration, and culture.
Conclusion: Hybrid Work Is Stabilizing, Not Retreating
Three years ago, hybrid work felt experimental. Today, it’s strategic. The sharp drop in fully remote and hybrid work might suggest a return to pre-pandemic norms, but that misses the bigger picture. What’s happening instead is refinement.
Leaders are defining expectations. Employees are weighing trade-offs. The result is a model that’s becoming more structured, more thoughtful, and more aligned with business outcomes.
The hybrid strategies that will endure are those grounded in performance, empathy, and continuous feedback. As AI, workplace design, and collaboration technologies evolve, companies have more tools than ever to make hybrid work not just possible—but productive.
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Aside from his role as CEO of TMC and chairman of ITEXPO #TECHSUPERSHOW Feb 10-12, 2026, Rich Tehrani is CEO of RT Advisors and a Registered Representative (investment banker) with and offering securities through Four Points Capital Partners LLC (Four Points) (Member FINRA/SIPC). He handles capital/debt raises as well as M&A. RT Advisors is not owned by Four Points.
The above is not an endorsement or recommendation to buy/sell any security or sector mentioned. No companies mentioned above are current or past clients of RT Advisors.
The views and opinions expressed above are those of the participants. While believed to be reliable, the information has not been independently verified for accuracy. Any broad, general statements made herein are provided for context only and should not be construed as exhaustive or universally applicable.
Portions of this article may have been developed with the assistance of artificial intelligence, which may have contributed to ideation, content generation, factual review, or editing
